TRENDING:

USD/JPY: Likely to test 153.00 before a sizeable pullback – UOB Group

There is a chance for US Dollar (USD) to test 153.00 again before a more sustained and sizeable pullback can be expected. In the longer run, further USD strength is likely; the level to watch is 153.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Further USD strength is likely

24-HOUR VIEW: "USD surged two days ago. Yesterday, when USD was at 152.30, we indicated that 'while impulsive momentum is likely to outweigh the deeply overbought conditions, it remains to be seen if USD can break above 153.00 today.' USD subsequently rose to a high of 152.99 and then pulled back to close higher for the fifth straight day (152.68, +0.51%). While conditions remain deeply overbought, there is a chance for USD to test 153.00 again before a more sustained and sizeable pullback can be expected. Support is at 152.00, followed by 151.50."

1-3 WEEKS VIEW: "We turned positive on USD at the start of the week. Yesterday (07 Oct, spot at 150.35), we highlighted that 'further USD strength is likely, and the level to watch is 153.80.' We will continue to hold the same view as long as the ‘strong support’ at 150.90 (level was at 150.50 yesterday) holds."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD comes under pressure near 1.1600

EUR/USD is now facing increasing selling pressure, abandoning the area of recent daily highs and refocusing on the 1.1600 region amid decent losses for the day. The pair’s correction comes in response to the acceptable bounce in the US Dollar, while traders gear up for upcoming key data releases in the US.

GBP/USD recedes to 1.3140 on USD rebound

GBP/USD remains on the back foot on Friday, retreating to the 1.3140 region on the back of the marked upside impulse in the Greenback. In the meantime, worries about the UK’s fiscal discipline and political stability keep the British Pound under scrutiny, weighing on Cable. Adding to the noise, reports suggested PM Starmer and Chancellor Reeves have shelved plans to raise income tax rates.